Low prices for rapeseed oil are contributing to the growth of global demand

Published 2023년 12월 19일

Tridge summary

Rapeseed oil consumption reached a record 29.8 million tons in 2023, with an increase in its use in both the edible oil market and biodiesel market in various regions, causing a decrease in deliveries of Argentinian biodiesel to the EU. Falling rapeseed oil prices have led to an increase in its use in biodiesel production in the EU, resulting in a projected growth of consumption in the EU, USA, and Canada. Conversely, the global olive oil carryover stocks have fallen to an all-time low of 0.77 million tons in FY2023/24, leading to a spike in prices, driven by a decrease in production and high demand.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Against the background of attractive prices and a significant volume of production, rapeseed oil consumption reached a record 29.8 million tons in 2023, which is 11% or 3 million tons higher than last year, graintrade reports. At the same time, the share of rapeseed oil consumption has grown not only in the edible oil market (primarily in India and China), but also in the biodiesel market in North America and the EU. The premium for canola oil compared to soybean oil in Rotterdam fell from $263/t in 2022 to $37/t in 2023, making Argentinian biodiesel unattractive to European buyers, causing its deliveries to the EU in January-October 2023 to decrease to 0.2 million tons compared to 1 million tons for the same period in 2022. Falling rapeseed oil prices have contributed to an increase in its use in biodiesel production in the EU. Against this background, the consumption of this oil in 2023 may grow compared to last year in the EU by 0.4 million tons to a record 10 million tons, in ...

Source: Landlord